Dubai poised to outpace global prime residential growth in 2025: Savills

Following a strong performance in 2024, Dubai’s prime residential market is expected to continue its upward trajectory in 2025, with capital values forecast to grow by up to 9.9 per cent, according to the latest research from global real estate consultancy Savills.

The Savills Prime Residential World Cities Index revealed that Dubai’s prime residential capital values rose by 6.8 per cent in 2024, cementing the emirate’s status as a global investment hub. In addition, Dubai saw a remarkable 23.5 per cent growth in rental prices last year, driven by continued demand for luxury living.

The growth is fueled by an increasing population and a steady influx of high-net-worth individuals and family offices into the UAE. Despite new supply entering the market, Dubai’s luxury segment continues to evolve, with several ultra-luxury projects redefining the market’s understanding of “prime.”

A strong year for Dubai’s prime residential property segment

In 2025, Savills projects Dubai to lead global prime residential price growth, with capital values expected to rise by 8 to 9.9 per cent, the highest among 30 global cities tracked in the index. The city is also predicted to experience the strongest rental growth, with a projected increase of more than 10 per cent.

Globally, Savills forecasts an average price growth of 1.6 per cent across the 30 cities monitored, a slight decline from the 2.2 per cent recorded in 2024. This indicates a more cautious outlook for global prime property markets.

“Despite recent economic turbulence, prime residential markets have shown remarkable resilience,” said Kelcie Sellers, associate director at Savills World Research. “With 2024 deemed the ‘year of elections,’ 2025 will be a period where new governments begin to implement changes that could affect prime residential markets across the globe.”

Andrew Cummings, head of Residential Agency at Savills Middle East, added, “Dubai’s prime residential sector continues to thrive, with demand outpacing supply in the city’s most sought-after communities. The strong rental performance and capital appreciation are making Dubai an increasingly attractive destination for global investors. We expect further momentum in 2025, with high-value transactions and new ultra-luxury developments reshaping the city’s real estate landscape.”

Read Real estate trends in 2025: Dubai developers share insights

Highly attractive to investors

Dubai’s prime residential market remains highly attractive to investors and residents alike, bolstered by expanding job opportunities, major infrastructure projects, and government-led initiatives. International buyers are often opting to rent before purchasing, contributing to the surge in rental prices in 2024 and further establishing Dubai as a luxury living destination.

Looking forward, Cummings concluded, “Dubai’s property market is expected to maintain its upward momentum in 2025, surpassing global markets like London, Hong Kong and New York. The demand for branded residences, waterfront developments, and sustainable luxury homes positions the city as a leading global hub for prime residential investment.”

Savills World Cities Prime Residential Index: 2025 capital value growth Forecast versus 2024 growth

City	2025 Forecast	2024 Capital Value Growth	Prime Capital Value (Dec 2024) (US) $ psf	Prime Capital Value (Dec 2024) (EUR) € psm
Dubai	+8% to 9.9%	6.8%	$930	€9,200
Sydney	+4% to 5.9%	3.9%	$1,950	€19,200
Madrid	+4% to 5.9%	9.4%	$1,120	€11,000
Lisbon	+4% to 5.9%	6.0%	$1,400	€13,800
Barcelona	+4% to 5.9%	8.6%	$870	€8,600
Cape Town	+4% to 5.9%	5.1%	$260	€2,500
Tokyo	+2% to 3.9%	8.6%	$2,120	€20,900
Mumbai	+2% to 3.9%	4.4%	$1,200	€11,800
Kuala Lumpur	+2% to 3.9%	0.4%	$240	€2,400
Shanghai	+2% to 3.9%	-2.4%	$2,000	€19,700
Amsterdam	+2% to 3.9%	7.4%	$1,030	€10,200
Rome	+2% to 3.9%	3.2%	$1,450	€14,300
Miami	+2% to 3.9%	-1.2%	$1,490	€14,600
New York	>0% to 1.9%	-0.9%	$2,590	€25,500
Paris	>0% to 1.9%	2.1%	$1,880	€18,600
Seoul	>0% to 1.9%	6.9%	$1,860	€18,300
Beijing	>0% to 1.9%	-2.1%	$1,490	€14,700
Hangzhou	>0% to 1.9%	-1.4%	$1,210	€11,900
Athens	>0% to 1.9%	4.4%	$1,180	€11,600
Los Angeles	>0% to 1.9%	-3.5%	$1,480	€14,600
Bangkok	>0% to 1.9%	5.1%	$1,090	€10,800
Berlin	0.0%	0.5%	$1,150	€11,400
Geneva	0.0%	1.6%	$2,550	€25,200
Milan	0.0%	0.0%	$1,520	€15,000
Singapore	-1.9% to <0%	1.1%	$1,810	€17,900
Shenzhen	-1.9% to <0%	-4.2%	$1,470	€14,500
San Francisco	-1.9% to <0%	0.8%	$1,410	€13,900
London	-3.9% to -2%	0.0%	$1,920	€18,900
Hong Kong	-3.9% to -2%	-2.4%	$3,860	€38,000
Guangzhou	-3.9% to -2%	-4.0%	$1,480	€14,600

Download the full World Cities Prime Residential 2025 report here.